Business Ethics Lesson 1
What would you do? A neighbor offered you $15 for picking up her mail. Afterward, she gives you $20 and refuses change. She actually gave you two twenties that were stuck together. What do you do?
Ethics In your own words define ethics. Think about an ethical business you have read or heard about and the reasons you consider it to be ethical.
The Nature of Ethics Ethics – moral principles by which people conduct themselves personally, socially, or professionally. Examples: Not cheating on a test, choosing not to lie to family or friends Business ethics – rules based on moral principles about how businesses and employees ought to conduct themselves. List: Think of examples of how people conduct themselves ethically in their personal, social, and professional lives.
The Nature of Ethics Effects of unethical behavior by customers are not always obvious. Businesses have to charge more; customers then pay more. Unethical businesses may find it difficult to retain employees, lose customers or be fined. Different cultures, businesses, and industries have different ethical standards. Example: bribery/gift giving Question: In what ways can a business behave ethically toward its employees?
Law and Ethics Laws involve rules for conduct that may be used to punish violators. Code of ethics – a set of guidelines for maintaining ethics in the workplace. (Target) Most businesses have their own code of ethics in place. Some unethical behaviors lead to passage of legislation that makes the behaviors illegal. Examples: work-related health and safety issues, consumer protection, discrimination in the workplace
Ethical Observations by Employees Observed at least one type of misconduct = 52% Reported their organizations implement ethics training = 69% Indicated their organizations offer ethics advice = 65% Observed misconduct at work and reported it = 55% Discussion Question: Does American business seem to be becoming more or less concerned about ethical behavior?
Conflicts of Interest Conflict of interest – conflict between self-interest and professional obligation. Example: Manager hiring a relative to do work in the company, but relative is unqualified to do the work.
Ethical Questions Is it against the law? Does it violate company or professional policies? Even if everyone is doing it, how would I feel if someone did this to me? Am I sacrificing long-term benefits for short-term gains?
Ethical Decision-Making Process Steps to take if you find yourself in an ethical dilemma: Identify the ethical dilemma. Discover alternative actions. Decide who might be affected. List the probable effects of the alternatives. Select the best alternative. This process will help you make a more informed ethical choice.
Review Questions What is the difference between personal and business ethics? Describe some of the ways that unethical business practices can affect a business. What is the relationship between illegal behaviors of business and unethical behaviors of business?